CFTC adopts digital asset classification framework to standardize terms like stablecoins and other crypto jargon

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Committee Pushes for CFTC Adoption of Digital Assets Taxonomy

According to The Block, the committee responsible for providing advisory recommendations to the U.S. Commodity Futures Trading Commission (CFTC) has voted to advance the "Digital Assets Taxonomy." The committee emphasized the effectiveness of this taxonomy in providing regulatory clarity and its potential to assist in future legislation and rulemaking.

Caroline Butler, Global Head of Digital Assets at BNY Mellon and Chair of the Digital Assets Market Structure Subcommittee, stated during the meeting:

A good friend of mine always says, 'Words create worlds,' and we hope that these terms can help inform regulation when appropriate.

Standardizing Digital Assets Terminology

The Digital Assets Taxonomy aims to standardize terminology and provide a consistent language for participants in the digital assets ecosystem to enhance regulatory clarity, promote innovation, identify and address risk factors, and facilitate the efficient understanding of regulatory policies. Terminology includes digital assets, central bank digital currencies, stablecoins, and more.

Denelle Dixon, CEO of the Stellar Development Foundation, also noted that this is a potential win for the crypto space.

Today the @CFTC Global Markets Advisory Committee voted to advance a taxonomy document for digital assets, based on the work by Caroline Butler of @BNYMellon and Sandy Kaul of @FTI_US (Stellar network builder!).

Taxonomy may sound like a quiet victory, but having a common…

— Denelle Dixon (@DenelleDixon) March 6, 2024